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World Bond Yields Continue to Decline

July 3, 2019 by Jim Wyckoff

U.S. Treasury bond and note futures prices hit contract highs this week (prices move in an inverse relationship with yields). Meantime, European government bond yield are dropping, with the benchmark German 10-year bund hitting a record low this week. Very low and even problematically low inflation levels in the major economies of the world are perplexing central banks and also the savers around the globe, who get little to no return on the savings accounts. This scenario has been bullish for world stock markets and is likely to become more bullish for raw commodities. Reason: Easing monetary policies of the world’s central banks puts more money into the financial system, which in turn should mean better demand for commodities. Stay tuned!–Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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